Brazil will import almost 42,000 short tons of American soybeans
By Diego Flammini
Brazil will, at least temporarily, allow the import of U.S. soybeans.
The South American country’s ministry of agriculture has suspended tariffs on corn, soybeans, soymeal and soy oil from countries outside of the Mercosur trade bloc to help make up domestic supplies in the country.
Brazil, Argentina, Paraguay and Uruguay make up the Mercosur countries. Tariffs average about 14 percent on products that come from outside of the bloc.
Excessive exports to China led to Brazil’s decision to import American soybeans.
Brazil exported such large volumes of soybeans to China that little was left for domestic use, leading to increased feed and good prices.
Brazil could import 1 million tonnes (1.1 million short tons) of soybeans this year.
The U.S. will make up a small part of that number.
The vessel Discoverer docked at the Louis Dreyfus Port Allen, Louisiana terminal on the Mississippi River on Monday. That ship is being loaded with about 38,000 tonnes (41,800 short tons) of soybeans, Reuters reported.
The ship is expected to arrive in Brazil on Nov. 20.
This trading relationship may not mean long-term opportunities for U.S. farmers.
Brazil is likely to purchase the soybeans they need to restock domestic supplies, then reapply the tariffs.
“It’s a small amount and means nothing,” said Moe Agostino, chief commodity strategist with Farms.com Risk Management, of Brazil’s import of American soybeans. “Brazil has done it before but it’s because they over-exported and have no more supplies for domestic consumption. New (Brazilian) supplies come in at the end of February 2021.”